4
Nov
Oil falls to below $60 a barrel
REPORT FROM BBC NEWS 4TH NOVEMBER 2008 The price of Brent crude oil
has fallen below $60 a barrel for the first time in 20 months, amid
growing fears that a US recession will reduce demand. Brent crude
for delivery in December shed $1.56 a barrel in London at $58.92
while US sweet crude oil dropped $1.19 to $62.72 a barrel. Oil
prices have slumped since hitting a record of $147 a barrel in
July, as consumers have cut their spending. Members of oil cartel
Opec have decided to cut output to boost prices. 'The overriding
concern is the economy in the US,' said Victor Shum, energy analyst
at consultancy Purvin & Gertz. Credit Suisse has cut its
forecast for China's energy demand, predicting that it will remain
unchanged in 2009. There had been hopes that growth in developing
nations such as China and India would help offset the slump in
demand in US.